Update – 12th September, 2016: This method is now being phased out and replaced by the newer, faster, Equity Bank Portal. Read all about it here.
Equity Bank has just made a huge announcement that it is joining the PayPal withdrawal race. According to them, you should be able to withdraw money from PayPal straight into your Equity Bank account.
Should you be happy, sad or skeptical? Only time will tell.
Equity Bank is not the first huge company to join this race. Nation also started the NationHela PayPal withdrawal service the other day and it ended up being a terrible failure. This service was withdrawn in a few short weeks. NationHela still remains as a money transfer option but has been under heavy criticism as most people claim that it is unreliable.
Equity is widely known as a bank that knows their stuff. Let us hope that they will do a good job here.
Find Equity PayPal withdrawal details here.
Just like you, I also thought it was a scam till I saw the same announcement in Equity Bank Kenya’s official website.
How to withdraw money from PayPal to Equity
So, how exactly does it work?
According to their site, here are the steps:
- Create a PayPal account and verify it
- Open an account with Equity or use your existing one if you have
- Get paid via PayPal
- Withdraw from PayPal to your Equity Bank account
Of course only number four specifically talks about this withdrawal. I’ve done a quick withdrawal of a small amount and here are the withdrawal steps:
- Go to Equity’s PayPal withdrawal portal
- Click on withdraw from PayPal
- A small dialog box will pop up. Click where appropriate on whether it is for an individual or business
- Enter your Equity Bank number. This will initiate a one time PIN in your official Equity email address (the email address Equity normally uses to communicate with you)
- Go to your mail and grab the PIN
- Paste it back on the online form
- Fill in your details and ensure accuracy
- Accept the terms and conditions
- Pay via PayPal
- Click on finish
You’ll get an email from FNB on behalf of Equity with your withdrawal details. Of course you’ll also receive an email from PayPal with their receipt.
Note that you’ll need to use your contact PayPal email address on the Equity Bank form. Using another email address that is not your main, PayPal contact address will result in an error. All other details in the form should match PayPal details.
Advantages of this Service
As an optimistic person, I’ll assume the service works fine. Yes, I believe in innocent until proven guilty. So, if all is well, some advantages would be:
- Equity will be able to log all your PayPal withdrawals into their statements, meaning it may finally be easier for freelancers to get a local bank loan.
- The dollar rates are awesome. I have just made a withdrawal and the rate is 84.3, better than most other PayPal withdrawal services.
- The commission is negligible, only 1.5% is charged! If it works, it will be the best ever local commission.
- You can withdraw small amounts, even one dollar.
Disadvantages of the Equity PayPal Withdrawal Service
- It takes too long. Their site claims that the cash will reflect in your bank account in five to eight days.
- The obvious risk of any new PayPal withdrawal service applies i.e. the big question, will it last?
Ok, this means how it works, usually just abbreviated as M.O.
So far, there is no official statement from PayPal stating that they can work directly with a Kenyan bank. Therefore, there must be a third party gateway involved; probably a sister company due to the extremely low commission (1.5%) involved.
It seems like they have a deal with some South African bank called FNB (First National Bank) that helps them do this. The 5 days delay must have something to do with an EFT. Note that this info is simply what I’ve gathered through the small withdrawal I’ve just made. Only Equity Bank can give you their official M.O.
Since PayPal withdrawal is one of the biggest challenges for people getting paid online, it doubles as one of the most lucrative avenues of making money.
Of course in due time a bank was to hop in and start swallowing this cash.
Note that PayPal has not yet made any announcement that it is officially working with Kenyan banks. The way things are going, it seems if one day PayPal was to officially work with them and allow instant withdrawals, many people will lose their business 🙂
As stated before, I have initiated a personal withdrawal to test out this service. I’ll definitely let you know, either here or through my mailing list how that goes and if there are any additional advantages or disadvantages.
I take this moment to welcome Equity into this PayPal withdrawal race. So, deal or no deal? Only time will tell.
Share this post with everyone you know. What do you personally think of this PayPal to Equity service? Let’s talk on the comments.